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02-08-2022 ERMU MIN ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION HELD AT THE UPPERTOWN CONFERENCE ROOM February 8,2022 Members Present: Chair John Dietz,Vice Chair Al Nadeau, Mary Stewart, and Matt Westgaard Present via Zoom: Commissioner Paul Bell participated in the meeting via interactive television as he was out of the state at the time of the meeting. ERMU Staff Present: Theresa Slominski, General Manager Tom Sagstetter, Conservation & Key Accounts Manager Michelle Canterbury, Executive Administrative Manager Tom Geiser, Operations Director Chris Sumstad, Electric Superintendent Mike Tietz,Technical Services Superintendent Dave Ninow, Water Superintendent Chris Kerzman, Engineering Manager Tony Mauren, Executive Administrative Manager Others Present: Peter Beck,Attorney; Cal Portner, City Administrator 1.0 GOVERNANCE 1.1 Call Meeting to Order The regular meeting of the Utilities Commission was called to order at 3:39 p.m. by Chair Dietz. 1.2 Pledge of Allegiance The Pledge of Allegiance was recited. 1.3 Consider the Agenda Chair Dietz requested the addition of items 5.6 Downtown Streetlights and 5.7 HR Office Location Mr. Ninow requested the removal of item 5.5 Amendment to Verizon Non-Exclusive Tower Attachment Lease Agreement for Johnson Tower as it was not ready for commission review. Moved by Commissioner Nadeau and seconded by Commissioner Westgaard to approve the amended February 8,2022,agenda. Motion carried 5-0 1.4 Recognition of Employee Promotion—Tony Mauren, Executive Administrative Manager Elk River Municipal Utilities Commission Meeting Minutes February 8, 2022 Page 1 Ms.Slominski informed the Commission that following notice of Ms. Canterbury's plan to retire, and a public position posting and interview process, Mr. Mauren had been promoted from Communications&Administrative Coordinator to Executive Administrative Manager. Ms. Canterbury shared some background on working with Mr. Mauren and congratulated him on the promotion. Mr. Mauren expressed his excitement and appreciation for the opportunity. Ms. Canterbury then read a written statement sharing her gratitude for the experience of working at ERMU. Chair Dietz commended Ms. Canterbury's investment in her work and added that it was a pleasure to collaborate with her. The Commission applauded Ms. Canterbury. 2.0 CONSENT AGENDA(Approved By One Motion) Moved by Commissioner Stewart and seconded by Commissioner Westgaard to approve the Consent Agenda as follows: 2.1 Check Register—January 2022 2.2 Regular Meeting Minutes—January 11,2022 2.3 Data Practices Policy—Responsible Authority and Data Practices Compliance Official Appointments Motion carried 5-0. 3.0 OPEN FORUM No one appeared for open forum. 4.0 POLICY&COMPLIANCE Nothing was presented for policy&compliance. 4.1 2021 Annual Safety Report Ms. Slominski presented the 2021 Annual Safety Report for commission review. She noted there were two nonserious injuries in the report which were the result of unfortunate circumstances and not neglect. Elk River Municipal Utilities Commission Meeting Minutes February 8, 2022 Page 2 Chair Dietz commended staff for its small number of injuries given the high-risk field that they work in. Moved by Commissioner Nadeau and seconded by Commissioner Bell to receive and file the 2021 Annual Safety Report. Motion carried 5-0 5.0 BUSINESS ACTION 5.1 Financial Report— December 2021 Ms. Slominski presented the December 2021 Financial Report and shared that she was happy to see that ERMU had performed slightly better than budget. Ms. Slominski went on to provide her opinion that the biggest contributor to increased expenses in 2021 was higher purchased power costs. Chair Dietz asked staff if they expect the budget and actual amounts of purchased power costs to be closer in 2022, noting the disparity in 2021. Ms. Slominski responded that there was a large disparity in power provider's budget which created the gap. She added that ERMU is again budgeting from the numbers that the power provider presents so any potential disparity would depend on fluctuations in the market like those seen in 2021. There was discussion. Chair Dietz noted the increase in administrative expenses within the water budget. Ms. Slominski explained that this line item was impacted by bonding and consulting fees as well as the department's share of medical and dental insurance. Moved by Commissioner Stewart and seconded by Commissioner Nadeau to receive the December 2021 Financial Report. Motion carried 5-0. 5.2 2021 Fourth Quarter Delinquent Items Ms. Slominski presented the 2021 Fourth Quarter Delinquent Items. She highlighted the last paragraph in the memo that provides a national benchmark for the percentage of doubtful accounts (bad debt/write-offs). ERMU is below that national average and its own budget amount. Ms. Slominski credited staff with this favorable result. There was discussion. Chair Dietz asked if individuals who delayed payments during the pandemic have been catching up. Ms. Slominski responded there are some payment plans in place and many customers have received assistance. She also noted that ERMU's receivables balance is in a better position than it was at this point last year. There was discussion. Chair Dietz asked Mr. Portner if funds from the American Rescue Plan Act could cover some portion of delinquencies. Mr. Portner responded that funds could be used for that purpose, Elk River Municipal Utilities Commission Meeting Minutes February 8, 2022 Page 3 but it would require hiring a third party to identify which accounts would receive funds and the amounts they would receive. There was discussion. Moved by Commissioner Nadeau and seconded by Commissioner Stewart to approve the 2021 Fourth Quarter Delinquent Items submitted. Motion carried 5-0. 5.3 Strategic Plan and 2021 Annual Business Plan Results Ms. Slominski presented her memo on the Strategic Plan and 2021 Annual Business Plan Results. She then invited staff to share updates on one of the results within their department. Ms. Canterbury explained the progress made in updating the Management and Commission Policy manuals. Mr. Sagstetter provided background on the passing of the Energy Conservation and Optimization Act in May of 2021. He informed the Commission that there are three workgroups focusing on implementing components of the Act. Mr. Tietz updated the Commission on the progress of the Advanced Metering Infrastructure (AMI) project.There was discussion on the funding for this project. Ms. Slominski explained that the project has been budgeted and built into ERMU's rates. Mr. Tietz went on to explain some of the benefits of AMI. There was discussion. Mr. Sumstad provided background on the implementation of the outage communication plan. He explained that protocols put in place have improved lines of communications between field and office staff which helps get information out to customers via the website and social media. There was discussion. Mr. Kerzman presented his item on the progress of the Field Services Facility Expansion project. There was discussion. Mr. Geiser presented statistics on the work that had been completed by the electric department over the past year including 163 services, 10 developments, 15 three phase services. He also provided information on the progress of the utilities work that needs to be completed for the Highway 169 Redefine project. There was discussion. Chair Dietz asked why MnDOT was requiring the removal of infrastructure from intersections that aren't schedule for work this year. Mr. Geiser explained that MnDOT will need the right of way clear to manage traffic during construction. There was discussion. Commissioner Stewart asked what will be done with the wire being removed from Highway 169. Mr. Geiser responded that it will be rolled up and salvaged. Elk River Municipal Utilities Commission Meeting Minutes February 8, 2022 Page 4 Mr. Ninow provided background on the backflow prevention program. He went on to share that the program received commendation from the Minnesota Rural Water Association for addressing the issue and providing a service that protects the water system at no charge to customers.There was discussion. Mr. Slominski surveyed the Commission to ensure they were receiving the information they need to govern. There were no requests for other information. 5.4 Field Services Facility Expansion Project Update Mr. Kerzman provided an update on the Field Services Facility Expansion project. He shared that most of the windows and roofing have been installed and that concrete was scheduled to be laid in 2-3 weeks. Chair Dietz asked for an update on the soil contamination issue that was raised in the initial stages of the project. Mr. Kerzman responded there would be further investigation in the spring. Mr. Kerzman then noted that there was a resolution to award and approve assignment of construction contract to RJM Construction for the vehicle washing equipment. Moved by Commissioner Nadeau and seconded by Commissioner Stewart to adopt resolution 22-2, Awarding and Approving the Assignment of Construction Contract to RJM Construction. Motion carried 5-0. 5.5 Amendment to Verizon Non-Exclusive Tower Attachment Lease Agreement for Johnson Tower Removed from the agenda to be reviewed at a later date. 5.6 Downtown Streetlights There was discussion about how ERMU charges staff time to hang attachments to the Utilities' streetlights in downtown Elk River. 5.7 HR Office Location There was discussion about having human resources staff office at the field services site for part of the week to make it easier for field staff to meet with them. Ms. Slominski explained that there was a plan to have staff split time between the office and field locations once the new field services facility is complete. 6.0 BUSINESS DISCUSSION Elk River Municipal Utilities Commission Meeting Minutes February 8, 2022 Page 5 6.1 Staff Updates Ms. Canterbury invited the commissioners to provide topics they would like to see covered in the annual commissioner orientation to be held during the March meeting. Commissioner Stewart thanked Ms. Canterbury for her efforts and contributions to the Utilities during her employment. Chair Dietz asked Mr. Ninow for an update on the County Road 13 negotiations. Mr. Ninow shared that the negotiations are ongoing. 6.2 City Council Update Commissioner Westgaard provided an update from the council meeting including discussions about future property values and county road trails. 6.3 Future Planning Chair Dietz announced the following: a. Regular Commission Meeting—March 8, 2022 b. 2021 Governance Agenda 6.5 Other Business There was no other business. 7.0 ADJOURN REGULAR MEETING Moved by Commissioner Nadeau and seconded by Commissioner Westgaard to adjourn the regular meeting of the Elk River Municipal Utilities Commission at 4:44 p.m. Motion carried 5-0. Minutes prepared by Tony Mauren. John J. bietz; kMJJU mission Chair —27/ Tina Allard,City Clerk Elk River Municipal Utilities Commission Meeting Minutes February 8, 2022 Page 6